Introduction of Anti-CBDC Amendment
On Tuesday, Representative Keith Self, a Republican from Texas, introduced an amendment aimed at prohibiting the United States from adopting a central-bank digital currency (CBDC) as part of the National Defense Authorization Act (NDAA). This legislative move comes as the House Rules Committee is set to evaluate whether the amendment will proceed to a full vote.
Concerns Over CBDC Regulations
Self took to Twitter to express concerns over unfulfilled promises regarding the inclusion of CBDC regulations in the bill, stating,
“Promises were broken to include this language in the NDAA. My amendment would fix the bill.”
Details of the NDAA and the Amendment
The NDAA is a yearly legislative requirement that authorizes the budget, policies, and spending for the Department of Defense. According to reports from Politico, House GOP leaders are planning to advance this year’s defense bill for a vote on Wednesday afternoon. Self’s amendment, dubbed the “Anti-CBDC Surveillance State,” aims to restrict the Federal Reserve from developing or implementing a CBDC, as well as any similar digital asset, while preventing federal institutions from directly engaging with individuals in a banking capacity.
Provisions and Exceptions
This proposed legislation would allow exceptions for digital currencies that are “dollar-denominated, open, permissionless, and private,” thereby safeguarding privacy rights similar to those associated with physical currency. The exclusion of CBDC prohibition language from the NDAA appears to have sparked discontent among hard-line Republicans, who feel that their leaders reneged on commitments made to include such measures.
Republican Reactions
Self articulated these frustrations to Fox Business, pointing to earlier assurances given to conservatives about the inclusion of an anti-CBDC provision that was expected to be written into the bill by Tom Emmer, the House Whip.
Other Republicans echoed Self’s sentiments. For instance, Representative Marjorie Taylor Greene (R-GA) expressed her support for cryptocurrencies, provided they do not allow government interference in citizens’ financial autonomy. She emphasized her opposition to any system that would enable the government to restrict Americans’ rights to manage their money as they see fit.
Meanwhile, Representative Warren Davidson (R-OH) tweeted about the government’s potential overreach, stating that a CBDC would put bureaucratic control between citizens and their funds, which could be detrimental.
Historical Context
In January, former President Donald Trump issued an executive order aiming to forbid federal entities from promoting or issuing CBDCs within the U.S., citing concerns over financial stability and privacy. A staff member from House leadership revealed that efforts to incorporate the CBDC ban into the NDAA had faltered during negotiations about a bipartisan housing package, ultimately leading to disappointment among certain Republican members who had hoped for stronger legislation regarding digital currencies.
